(b) The following transactions took place in 2020, and were included in the calculation of GDP for

2020:

Johnny bought a new copy of Macroeconomics textbook.

Adam purchased a house that was constructed and available for sale in 2019.

Domino Pizza bought 20 kilograms of mozzarella cheese to make pizza which it sells.

Government spent RM50 million to build new schools and classrooms for 100,000

students.

Sam paid an amount for RM2,000 for car maintenance and repair services to HBC

automobile repair shop.

Bella purchased RM10,000 worth of Samsung stock.

Identify and explain the errors made in the above GDP computation. (9 marks)

(c) Double counting could cause GDP miscalculations and overestimation errors of the national data.

Describe the problem of double counting with an example.